Technology investment firm HUGE Group whose subordinate companies operate in the telecommunications, media and technology industries, announced that it made an offer to acquire all of Adapt IT Holdings’ shares at R5.52 cents per share, through share swopping.
After the close of Tuesday’s trade, the telecoms and fintech group said it had given notice to Adapt IT’s board that it had made a general offer for the group.
The consideration represented a 33% premium on the 30-day average traded price of Adapt IT shares on the day immediately preceding the date of the offer letter, being January 26, 2021.
Each seller of Adapt IT shares would receive 0.9 consideration shares in consideration for each sale share. The swop ratio was based on a Huge share price of R6.13c per Huge share.
The take-over bid follows on the heels of the Huge announcement on Monday that it plans to list on the London Stock Exchange (LSE). The group’s board had decided to apply for admission of its shares on the LSE’s Alternative Investment Market as a secondary listing.
Huge Group said it would retain its primary listing on the JSE and its A2X stock exchange listing. Huge’s shares closed 2.7% higher at R6.15 yesterday. Adapt IT fell 4.5% to R4.01.
In the year to June 2020 Adapt IT’s profit for the year fell to R70.8 million from R75m the previous year, but net gearing fell from 66% to 45%, while net cash from operations increased by 27% to R227m.